The Eno Center for Transportation conducts research on a variety of subjects intended to guide and improve transportation policy. Research projects can be specific studies by Eno or can be ongoing projects overseen by a working group.

Innovative Transit Contracting

Background

Across the United States, public transportation systems are under strain due, in part, to a range of governance, financial, and institutional problems. In response, transit providers are increasingly looking for ways to better serve their riders while working within tight budgets. One such strategy is contracting with private transportation companies to operate buses and trains, and also maintain the infrastructure. Most American transit agencies—unlike their counterparts in Europe and Asia—directly operate fixed-route transit services with their own employees, using equipment procured and owned by the agency. In the United States, contracting out (or “competitive tendering”) public transportation services is both complex and controversial.

Purpose

This project will determine if, how, and under what circumstances contracting can be implemented effectively to yield improved service for riders and better assets for agencies. Previous studies on contracting have focused on the potential for cost saving, which is real but varies substantially according to the efficiency of public operations beforehand, the labor market context, and the quality of the contract itself. The analysis and case studies presented in this project review the other benefits, drawbacks, and implementation strategies.

Funding

For more information on this project, contact publicaffairs[at]enotrans.org.

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Eno Working Groups

Eno’s working groups bring together industry leaders, influencers, and policymakers to develop pragmatic solutions to some of U.S. transportation’s most pressing challenges. Current working groups include aviation, freight, and transportation finance.

The Eno Center for Transportation is a neutral, non-partisan think-tank that promotes policy innovation and provides professional development opportunities across the career span of transportation professionals.